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Wages and employment increased across sectors and age groups, while the gap between higher- and lower-paid workers remains.
The median monthly wage for formal sector employees rose to RM3,167 in December 2025, reflecting a 4% increase from RM3,045 a year earlier, according to the Department of Statistics Malaysia (DOSM).
The Employee Wages Statistics (Formal Sector) Report for Q4 2025 showed that the country’s labour market remained on a steady growth path, supported by expanding employment and consistent wage increases across key segments.
Dato’ Sri Dr Mohd Uzir Mahidin, Chief Statistician said the number of formal employees grew 3.6% year-on-year to 7.08mn persons in the month. Median monthly wages also recorded sustained increases throughout the quarter, rising 4.3% in both October and November, and 4% in December.
Male employees earned slightly higher median wages
Male employees made up 55.1% (3.90mn persons) of the formal workforce, while female employees accounted for 44.9% (3.18mn persons).
In terms of wages, male employees recorded a median monthly wage of RM3,167 in December 2025, slightly higher than the RM3,120 received by female employees.
Mid-career workers continue to record the highest wages
By age group, employees aged 45 to 49 consistently recorded the highest median monthly wages in Q4 last year, increasing from RM3,827 in October to RM4,245 in December.
As a whole, all age groups experienced year-on-year (y-o-y) wage growth. The strongest increase was seen among employees aged below 20, whose median monthly wage rose 11.3% to RM1,700 in December 2025.
Wage growth observed across all sectors
Across economic activities, all sectors registered increases in median monthly wages during the quarter.
The mining & quarrying sector, which accounted for just 0.5% of total formal employment, recorded the highest median monthly wage at RM7,900 in December 2025. Meanwhile, the agriculture sector reported the lowest median wage at RM2,564, although it still saw a 7.6% y-o-y increase.
Kuala Lumpur leads at the state level
At the state level, three regions exceeded the national median monthly wage of RM3,167. Wilayah Persekutuan Kuala Lumpur recorded the highest median monthly wage at RM4,391, followed by Pulau Pinang at RM3,500, and Selangor at RM3,400.
In contrast, Kelantan (RM1,800), Perlis (RM1,864), and Sabah (RM2,045) recorded the lowest median monthly wages during the same period.
Wage disparity remains despite improvements
The share of formal employees earning below RM1,700 declined to 8.4% in December 2025, a decrease by 12.5 percentage points compared to the previous year.
However, wage disparity remains evident. Employees in the bottom 10% earned RM1,700 or less, while those in the top 10% earned at least RM11,122 per month, more than six times higher.
Dato’ Uzir noted that the statistics are based on administrative data from relevant agencies, focusing on citizens employed in the formal sector, particularly in the private sector.
“Looking ahead, DOSM will continue to enhance the dissemination of employee wages statistics by integrating various administrative data to produce more comprehensive statistics for an extensive understanding of Malaysia's labour market."
Infographics / DOSM
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